InternationalRelations

Seven out of 10 companies that were tracked over time saw their climate footprint grow between 2016 and 2018. The emissions of Irish beef producer ABP increased by 45% and Germany’s Tönnies, which supplies Aldi, by 30%.

The handful of companies that have climate plans rely on accounting tricks, greenwash and dubious offsets to distract from the fundamental changes needed to cut emissions, while offloading many of the costs and risks onto farmers in their supply chains

Analysis of the climate targets and plans of the 20 biggest companies revealed six key approaches — none involve a shift to agroecological farming or the production of less and better meat and dairy which offer the greatest potential to cut emissions

Only four companies report emissions from their entire supply chain even though livestock production accounts for 90% of their emissions. Half the companies provide no emissions data including France’s Groupe Bigard, which produces Charal meats, and all six of German companies such as Tönnies, Westfleisch and Müller

Only Nestlé, FrieslandCampina and ABP commit to an overall reduction in livestock emissions, yet even frontrunner, Nestlé, only aims for a 4% cut by 2030

Animal farming is responsible for 17% of Europe’s emissions and rose by 6% between 2007 and 2018

Feed is a key source of emissions from livestock farming, in part because its production is linked to deforestation

“The European Commission will be handing big meat and dairy corporations an early Christmas present if it throws its weight — and taxpayers’ money — behind dubious soil carbon offsets and continues to promote biogas from industrial livestock facilities as a sustainable fuel. The Commission should stop financing industrial agriculture and support the transition to sustainable agroecological farming practices based on less and better meat. It should also put rules in place to regenerate rural economies and provide decent work in the food sector,”

“For a long time, people have known that chemical pollution is a bad thing. But they haven’t been thinking about it at the global level. This work brings chemical pollution, especially plastics, into the story of how people are changing the planet.”

a huge number of chemical compounds registered for use – about 350,000 – and only a tiny fraction of these have been assessed for safety.

the total mass of plastics now exceeds the total mass of all living mammals

“Shifting to a circular economy is really important. That means changing materials and products so they can be reused, not wasted.”

There are growing calls for international action on chemicals and plastics, including the establishment of a global scientific body for chemical pollution akin to the Intergovernmental Panel on Climate Change.

“The rise of the chemical burden in the environment is diffuse and insidious. Even if the toxic effects of individual chemicals can be hard to detect, this does not mean that the aggregate effect is likely to be insignificant.“Regulation is not designed to detect or understand these effects. We are relatively blind to what is going on as a result. In this situation, where we have a low level of scientific certainty about effects, there is a need for a much more precautionary approach to new chemicals and to the amount being emitted to the environment.”

The chemical pollution planetary boundary is the fifth of nine that scientists say have been crossed, with the others being global heating, the destruction of wild habitats, loss of biodiversity and excessive nitrogen and phosphorus pollution.

Russia has invested heavily in infrastructure to develop the Northern Sea Route and hopes it will become a major shipping lane as the Arctic warms at a faster rate than the rest of the world. It is not currently used in winter due to thick ice cover.Russian authorities have said the country plans to begin year-round shipping via the Northern Sea Route in 2022 or 2023

During a crisis, no policymaker wants to hear an autopsy of How We Got Here. And academics are primed for that autopsy, because that is what we love to study

Policymakers care only about feasible options in which they possess some agency — i.e., have control over the levers. Many political scientists are interested in causal explanations that focus on structural factors outside the policymaker’s control. Telling a policymaker that this structural condition needs to change is of little use for a person whose idea of a long time horizon is two weeks.

most scholars most of the time simply cannot know all the dimensions of a particular policy problem

Very often, think-tankers, whose full-time job is to focus on having an impact, can bridge the gap far better than a cranky academic who is more likely to say “travel back in time and undo the 2008 Bucharest Summit Declaration!”

bridging that gap can look different to an academic than to someone in power. A policymaker wants good advice and then to be left alone. An academic might want to raise the costs of opting for what seems to them like a really bad decision

"regardless of whether Russia invades Ukraine again, Belarus’s territory will increasingly become a source of military threats to all its western neighbors, not just Ukraine."

In the eight centuries of Murano glassmaking, the use of natural gas is relatively new, adopted only in the 1950s.

But environmental regulations adopted in the interim prevent going back to wood. Local emissions would far exceed the legal threshold, explained Francesco Gonella, a physicist who specializes in artistic glass. “You may have a wood-powered stove up on a mountain, but you can’t have hundreds of wood-powered furnaces going at 1100 degrees Celsius,”

The glassmaking industry is responsible for only a tiny fraction of Italy’s emissions. But the work is energy-intensive. In a normal year, the Murano factories guzzle more than 13 million cubic meters of natural gas, according to a market insider speaking on the condition of anonymity because he wasn’t authorized by his company to talk. That’s as much as a town of 30,000 people would typically use in domestic heating. Yet Murano is an island of 5,000.

The range and depth of those colors, along with the level of artistry, help authentic Murano glass stand out from mass-produced versions from China.

“Murano’s is an unlucky sector,” said Gonella, the physicist. “It finds itself dealing with problems of different natures: commercial, because China rolls out counterfeit glass; environmental; and now the blow delivered by bills that are unsustainable for many.”

Electric furnaces can’t provide the kind of heat or artistic control they need. The sector has been looking into hydrogen as an alternative fuel. But that would require building a whole new network of pipes, designed to withstand corrosion from the hydrogen running through them.

“we’ll need a massive investment in local renewable technologies that won’t require the massive costs of importing power from the outside. Geothermic, absolutely, all around the island, and on it. Wind farms, off the lagoon, catching wind at dawn and dusk. And solar. All of these factories also need to be covered in solar panels.”

Mattia Rossi, 43, shuttered his family business this month because of financial problems made worse by skyrocketing bills.“If I’m shelling out 5,000 euros for the electric bill one month and 15 [thousand] the next, I won’t be able to raise the price by 30 to 40 percent. My goblet would no longer cost 80, but 150 euros. People just won’t buy it then. Because glass is a beautiful thing, but it’s not bread and milk. It’s unnecessary.”

This visceral emotion is unhealthy and extraordinarily dangerous because there are few checks and balances around Putin

The last time that his brand got stale, it was before the annexation of Crimea. That put him back on the top of the charts in terms of his ratings.

just a couple of days before the invasion of Ukraine in a little-noticed act, Azerbaijan signed a bilateral military agreement with Russia. This is significant because Azerbaijan’s leader has been resisting this for decades. And we can also see that Russia has made itself the final arbiter of the future relationship between Armenia and Azerbaijan. Georgia has also been marginalized after being a thorn in Russia’s side for decades. And Belarus is now completely subjugated by Moscow.

what Putin is saying now is that Ukraine doesn’t belong to Ukrainians. It belongs to him and the past. He is going to wipe Ukraine off the map, literally, because it doesn’t belong on his map of the “Russian world.” He’s basically told us that.

If there is serious resistance, he may not have sufficient force to take the country for a protracted period. It also may be that he doesn’t want to occupy the whole country, that he wants to break it up, maybe annex some parts of it, maybe leave some of it as rump statelets or a larger rump Ukraine somewhere, maybe around Lviv. I’m not saying that I know exactly what’s going on in his head. And he may even suggest other parts of Ukraine get absorbed by adjacent countries.

what Putin wants isn’t necessarily to occupy the whole country, but really to divide it up. He’s looked at Afghanistan, Iraq, Libya and other places where there’s a division of the country between the officially sanctioned forces on the one hand, and the rebel forces on the other. That’s something that Putin could definitely live with — a fractured, shattered Ukraine with different bits being in different statuses.

In 2020, Putin had the Russian Constitution amended so that he could stay on until 2036, another set of two six-year terms. He’s going to be 84 then. But in 2024, he has to re-legitimate himself by standing for election. The only real contender might have been Alexei Navalny, and they’ve put him in a penal colony. Putin has rolled up all the potential opposition and resistance, so one would think it would be a cakewalk for him in 2024. But the way it works with Russian elections, he actually has to put on a convincing show that demonstrates that he’s immensely popular and he’s got the affirmation of all the population.

Putin’s not looking so great, he’s been rather puffy-faced. We know that he has complained about having back issues. Even if it’s not something worse than that, it could be that he’s taking high doses of steroids, or there may be something else. There seems to be an urgency for this that may be also driven by personal factors.

Unfortunately, we have politicians and public figures in the United States and around Europe who have embraced the idea that Russia was wronged by NATO and that Putin is a strong, powerful man and has the right to do what he’s doing

Putin came to power after a series of operations that many have seen as a kind of false flag — bombings of buildings around Russia that killed Russian citizens, hundreds of them, followed by a war in Chechnya. That led to Putin coming to power as a wartime president. The annexation of Crimea in 2014 also came at a difficult time for Putin. Now we’re seeing another big military operation less than two years before he needs to stand for election again

If all was peaceful and quiet, why would you need Vladimir Putin?

We have had a long-term policy failure going back to the end of the Cold War in terms of thinking about how to manage NATO’s relations with Russia to minimize risk. NATO is a like a massive insurer, a protector of national security for Europe and the United States. After the end of the Cold War, we still thought that we had the best insurance for the hazards we could face — flood, fire etc. — but for a discounted premium. We didn’t take adequate steps to address and reduce the various risks. We can now see that that we didn’t do our due diligence and fully consider all the possible contingencies, including how we would mitigate Russia’s negative response to successive expansions.

Putin tried to warn Trump about this, but I don’t think Trump figured out what he was saying. In one of the last meetings between Putin and Trump when I was there, Putin was making the point that: “Well you know, Donald, we have these hypersonic missiles.” And Trump was saying, “Well, we will get them too.” Putin was saying, “Well, yes, you will get them eventually, but we’ve got them first.” There was a menace in this exchange. Putin was putting us on notice that if push came to shove in some confrontational environment that the nuclear option would be on the table.

The thing about Putin is, if he has an instrument, he wants to use it. Why have it if you can’t? He’s already used a nuclear weapon in some respects. Russian operatives poisoned Alexander Litvinenko with radioactive polonium and turned him into a human dirty bomb and polonium was spread all around London at every spot that poor man visited. He died a horrible death as a result.

The Russians have already used a weapons-grade nerve agent, Novichok. They’ve used it possibly several times, but for certain twice. Once in Salisbury, England, where it was rubbed all over the doorknob of Sergei Skripal and his daughter Yulia, who actually didn’t die; but the nerve agent contaminated the city of Salisbury, and anybody else who came into contact with it got sickened. Novichok killed a British citizen, Dawn Sturgess, because the assassins stored it in a perfume bottle which was discarded into a charity donation box where it was found by Sturgess and her partner. There was enough nerve agent in that bottle to kill several thousand people. The second time was in Alexander Navalny’s underpants.

if anybody thinks that Putin wouldn’t use something that he’s got that is unusual and cruel, think again. Every time you think, “No, he wouldn’t, would he?” Well, yes, he would. And he wants us to know that, of course.

similar to Hitler, he’s using a sense of massive historical grievance combined with a veneer of protecting Russians and a dismissal of the rights of minorities and other nations to have independent countries in order to fuel territorial ambitions?

there were an awful lot of people around Europe who became Nazi German sympathizers before the invasion of Poland. In the United Kingdom, there was a whole host of British politicians who admired Hitler’s strength and his power, for doing what Great Powers do, before the horrors of the Blitz and the Holocaust finally penetrated.

Putin has articulated an idea of there being a “Russky Mir” or a “Russian World.” The recent essay he published about Ukraine and Russia states the Ukrainian and Russian people are “one people,” a “yedinyi narod.” He’s saying Ukrainians and Russians are one and the same. This idea of a Russian World means re-gathering all the Russian-speakers in different places that belonged at some point to the Russian tsardom.

we are treading back through old historical patterns that we said that we would never permit to happen again

Our investments are not just boosting business profits, or Russia’s sovereign wealth funds and its longer-term development. They now are literally the fuel for Russia’s invasion of Ukraine.

If Western companies, their pension plans or mutual funds, are invested in Russia they should pull out. Any people who are sitting on the boards of major Russian companies should resign immediately. Not every Russian company is tied to the Kremlin, but many major Russian companies absolutely are, and everyone knows it.

our international allies, like Saudi Arabia, should be increasing oil production right now as a temporary offset. Right now, they are also indirectly funding war in Ukraine by keeping oil prices high.

India abstained in the United Nations, and you can see that other countries are feeling discomforted and hoping this might go away. This is not going to go away, and it could be “you next” — because Putin is setting a precedent for countries to return to the type of behavior that sparked the two great wars which were a free-for-all over territory. Putin is saying, “Throughout history borders have changed. Who cares?”

Ukraine has become the front line in a struggle, not just for which countries can or cannot be in NATO, or between democracies and autocracies, but in a struggle for maintaining a rules-based system in which the things that countries want are not taken by force. Every country in the world should be paying close attention to this. Yes, there may be countries like China and others who might think that this is permissible, but overall, most countries have benefited from the current international system in terms of trade and economic growth, from investment and an interdependent globalized world. This is pretty much the end of this. That’s what Russia has done.

What stops a lot of people from pulling out of Russia even temporarily is, they will say, “Well, the Chinese will just step in.” This is what every investor always tells me. “If I get out, someone else will move in.” I’m not sure that Russian businesspeople want to wake up one morning and find out the only investors in the Russian economy are Chinese, because then Russia becomes the periphery of China, the Chinese hinterlands, and not another great power that’s operating in tandem with China.

We keep thinking of World War I, World War II as these huge great big set pieces, but World War II was a consequence of World War I. And we had an interwar period between them. And in a way, we had that again after the Cold War. Many of the things that we’re talking about here have their roots in the carving up of the Austro-Hungarian Empire and the Russian Empire at the end of World War I. At the end of World War II, we had another reconfiguration and some of the issues that we have been dealing with recently go back to that immediate post-war period. We’ve had war in Syria, which is in part the consequence of the collapse of the Ottoman Empire, same with Iraq and Kuwait.

All of the conflicts that we’re seeing have roots in those earlier conflicts. We are already in a hot war over Ukraine, which started in 2014. People shouldn’t delude themselves into thinking that we’re just on the brink of something. We’ve been well and truly in it for quite a long period of time.

this is also a full-spectrum information war, and what happens in a Russian “all-of-society” war, you soften up the enemy. You get the Tucker Carlsons and Donald Trumps doing your job for you. The fact that Putin managed to persuade Trump that Ukraine belongs to Russia, and that Trump would be willing to give up Ukraine without any kind of fight, that’s a major success for Putin’s information war. I mean he has got swathes of the Republican Party — and not just them, some on the left, as well as on the right — masses of the U.S. public saying, “Good on you, Vladimir Putin,” or blaming NATO, or blaming the U.S. for this outcome. This is exactly what a Russian information war and psychological operation is geared towards. He’s been carefully seeding this terrain as well. We’ve been at war, for a very long time.

What Russia is doing is asserting that “might makes right.” Of course, yes, we’ve also made terrible mistakes. But no one ever has the right to completely destroy another country — Putin’s opened up a door in Europe that we thought we’d closed after World War II.

Our analysis confirms that unequal exchange is a significant driver of global inequality, uneven development, and ecological breakdown.

Today, we are told, the world economy functions as a meritocracy: countries that have strong institutions, good markets, and a steadfast work ethic become rich and successful, while countries that lack these things, or which are hobbled by corruption and bad governance, remain poor. This assumption underpins dominant perspectives in the field of international development (Sachs, 2005, Collier, 2007, Rostow, 1990, Moyo, 2010, Calderisi, 2007, Acemoglu and Robinson, 2012), and is reinforced by the rhetoric, common among neoclassical economists, that free-trade globalization has created an “even playing field”.

Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.

Historians have demonstrated that the rise of Western Europe depended in large part on natural resources and labour forcibly appropriated from the global South during the colonial period, on a vast scale. Spain extracted gold and silver from the Andes, Portugal extracted sugar from Brazil, France extracted fossil fuels, minerals and agricultural products from West Africa, Belgium extracted rubber from the Congo; and Britain extracted cotton, opium, grain, timber, tea and countless other commodities from its colonies around the world – all of which entailed the exploitation of Southern labour on coercive terms, including through mass enslavement and indenture. This pattern of appropriation was central to Europe’s industrial growth, and to financing the expansion and industrialization of European settler colonies, including Canada, Australia, New Zealand and the United States, which went on to develop similarly imperialist orientations toward the South (e.g., Naoroji, 1902, Pomeranz, 2000, Beckert, 2015, Moore, 2015, Bhambra, 2017, Patnaik, 2018, Davis, 2002).

for every unit of embodied resources and labour that the South imports from the North they have to export many more units to pay for it, enabling the North to achieve a net appropriation through trade. This dynamic was theorized by Emmanuel (1972) and Amin (1978) as a process of “unequal exchange”.Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.

Following Dorninger et al. (2021), we use a “footprint” analysis of input–output data to quantify the physical scale of raw materials, land, energy and labour embodied in trade between the North and South, looking not only at traded goods themselves but also the upstream resources and labour that go into producing and transporting those goods, including the machines, factories, infrastructure, etc.

Grounding our analysis in the physical dimensions of unequal exchange is important for several reasons. First, these resources – raw materials, land, labour and energy – embody the productive potential that is required for meeting human needs (use-value) and for generating economic growth (exchange-value). Physical drain is therefore ultimately what drives global inequalities in terms of access to provisions, as well as in terms of GDP or income (see Hornborg, 2020). Second, this approach allows us to maintain sight of the ecological impacts of unequal exchange. We know that excess energy and material consumption in high-income nations, facilitated by appropriation from the rest of the world, is causing ecological breakdown on a global scale. Tracing flows of resources embodied in trade allows us to determine the extent to which Northern appropriation is responsible for ecological impacts in the South; i.e., ecological debt (Roberts and Parks, 2009, Warlenius et al., 2015, Hornborg and Martinez-Alier, 2016).

Due to the growing fragmentation of international commodity chains, monetary databases on bilateral gross trade flows have been criticised for not accurately depicting the monetary interdependencies between national economies (Johnson and Noguera, 2012), i.e., the amount of a countries’ value added that is induced by foreign final demand and international trade relations. Trade in Value Added (TiVA) indicators Johnson and Noguera, 2012, Timmer et al., 2014 are designed to take into account the complexity of the global economy. The TiVA concept is motivated by the fact that, in monetary terms, trade in intermediates accounts for approximately two-thirds of international trade. Imports (of intermediates) are used to produce exports and hence bilateral gross exports may include inputs (i.e., value added) from third party countries (Stehrer, 2012). TiVA reveals where (e.g., in which country or industry) and how (e.g. by capital or labour) value is added or captured in global commodity chains (Timmer et al., 2014).

TiVA, which is sometimes referred to as the “value footprint”, is the monetary counterpart of the MRIO-based environmental footprint because both indicators follow the same system boundaries, i.e., all supply chains between production and final consumption of two countries including all direct and indirect interlinkages. Moreover, in contrast to global bilateral monetary trade flows, TiVA is globally balanced, meaning that national exports and imports globally sum up to zero. This is an important feature of the TiVA indicator that facilitates more consistent and unambiguous assessments.

for every unit of embodied raw material equivalent that the South imports from the North, they have to export on average five units to “pay” for it

For land the average ratio is also 5:1, for energy it is 3:1, and for labour it is 13:1

Table 1. Resource drain from the South.ResourceNorth → South flows 2015South → North flows 2015Drain from South in 2015Cumulative drain from South 1990–2015Raw material equivalents [Gt]3.3715.3912.02254.40Embodied land [mn ha]527.421,349.01821.5932,987.23Embodied energy [EJ]21.5543.5121.06650.34Embodied labour [mn py-eq]31.11219.22188.125,956.62

in the year 2015 the North’s net appropriation from the South totalled 12 billion tons of raw materials, 822 million hectares of land, 21 exajoules of energy (equivalent to 3.4 billion barrels of oil), and 188 million person-years equivalents of labour (equivalent to 392 billion hours of work). By net appropriation we mean that these resources are not compensated in equivalent terms through trade; they are effectively transferred gratis. And this appropriation is not insignificant in scale; on the contrary, it comprises a large share (on average about a quarter) of the North’s total consumption.

significant consequences for the global South, in terms of lost use-value. This quantity of Southern raw materials, land, energy and labour could be used to provision for human needs and develop sovereign industrial capacity in the South, but instead it is mobilized around servicing consumption in the global North.

Eight hundred and twenty-two million hectares of land, which is twice the size of India, would in theory be enough to provide nutritious food for up to 6 billion people, depending on land productivity and diet composition

material use is tightly linked to environmental pressures. It accounts for more than 90% of variation in environmental damage indicators (Steinmann et al., 2017), and more than 90% of biodiversity loss and water stress (International Resource Panel, 2019). Moreover, as Van der Voet et al. (2004) demonstrate, while impacts vary by material, and vary as technologies change, there is a coupling between aggregate mass flows and ecological impact. Net flows of material resources from South to North mean that much of the impact of material consumption in the North (43% of it, net of trade) is suffered in the South. The damage is offshored.

Industrial ecologists hold that global extraction and use of materials should not exceed 50 billion tons per year (Bringezu, 2015). In 2015, the global economy was using 87 billion tons per year, overshooting the boundary by 74% and driving ecological breakdown. This overshoot is due almost entirely to excess resource consumption in global North countries. The North consumed 26.71 tons of materials per capita in 2015, which is roughly four times over the sustainable threshold (6.80 tons per capita in 2015). Our results indicate that most of the North’s excess consumption (58% of it) is sustained by net appropriation from the global South; without this appropriation, material use in high-income nations would be much closer to the sustainable level.

In consumption-based terms, the North is responsible for 92% of carbon dioxide emissions in excess of the planetary boundary (350 ppm atmospheric concentration of CO2) (Hickel, 2020), while the consequences harm the South disproportionately, inflicting dramatic social and economic costs (Kikstra et al., 2021b, Srinivasan et al., 2008). The South suffers 82–92% of the costs of climate change, and 98–99% of the deaths associated with climate change (DARA, 2012)

Net appropriation of land means soil depletion, water depletion, and chemical runoff are offshored; net appropriation of energy means that the health impacts of particulate pollution are offshored; net appropriation of labour means that the negative social impacts of exploitation are offshored, etc (Wiedmann and Lenzen, 2018). In the case of non-renewable resources there is also a problem of depletion: resources appropriated from the South are no longer available for future generations to use (Costanza and Daly, 1992, World Bank, 2018), which is particularly problematic given that under conditions of net appropriation economic losses are not offset by investments in capital stock (cf. Hartwick, 1977). Finally, the extractivism that underpins resource appropriation generates social dislocations and conflicts at resource frontiers (Martinez-Alier, 2021).

the value of resources and labour cannot be quantified in dollars, and there is no such thing as a “correct” price.

Prices under capitalism do not reflect value or utility in any objective way. Rather, they reflect, among other things, the (im)balance of power between market agents (capital and labour, core and periphery, lead firms and their suppliers, etc); in other words, they are a political artefact

While prices by definition do not reflect value, they do allow us to compare the scale of drain to prevailing monetary representations of production and income in the world economy.

Fig. 2 shows that drain from the South in 2015 amounted to $14.1 trillion when measured in terms of raw material equivalents, $5.1 trillion when measured in terms of land, $3.6 trillion when measured in terms of energy and $20.3 trillion when measured in terms of labour.

Over the period 1990–2015, the drain sums to $242 trillion (constant 2010 USD). This represents a significant “windfall” for the North, similar to the windfall that was derived from colonial forms of appropriation; i.e., goods that did not have to be produced on the domestic landmass or with domestic labour, and did not have to be bought on the domestic market, or paid for with exports (see Pomeranz, 2000, Patnaik, 2018). While previous studies have shown that the price distortion factor increased dramatically during the structural adjustment period in the 1980’s (Hickel et al., 2021), our data confirms that since the early- to mid-1990’s it has tended to decline slightly. This means that the increase in drain during the period 1990–2007, prior to the global financial crisis, was driven primarily by an increase in the volume of international trade rather than by an increase in price distortion.

Table 3 shows that, over the 1990–2015 period, resources appropriated from the South have been worth on average roughly a quarter of Northern GDP.

the North’s reliance on appropriation from the South has generally increased over the period (despite a significant drop after the global financial crisis), whereas the South’s losses as a share of total economic activity have generally decreased, particularly since 2003, due to an increase in South-South trading and higher domestic GDP creation or capture within the South, both driven largely by China

Aid flows create the powerful impression that rich countries give benevolently to poorer countries. But the data on drain through unequal exchange raises significant questions about this narrative.

net appropriation by DAC countries through unequal exchange from 1990 to 2015 outstripped their aid disbursements over the same period by a factor of almost 80

for every dollar of aid that donors give, they appropriate resources worth 80 dollars through unequal exchange. From the perspective of aid recipients, for every dollar they receive in aid they lose resources worth 30 dollars through drain

The dominant narrative of international development holds that poor countries are poor because of their own internal failings and are therefore in need of assistance. But the empirical evidence on unequal exchange demonstrates that poor countries are poor in large part because they are exploited within the global economy and are therefore in need of justice. These results indicate that combating the deleterious effects of unequal exchange by making the global economy fairer and more equitable would be much more effective, in terms of development, than charity.

In an equitable world, the resource trade deficit that the North sustains in relation to the South would be financed with a parallel monetary trade deficit. But in reality, the monetary trade deficit is very small, equivalent to only about 1% of global trade revenues, and fluctuates between North and South. In effect, this means that the North achieves its large net appropriation of resources and labour from the South gratis.

The question of sectoral disparities has been moot since the 1980s, however, as industrial production has shifted overwhelmingly to the South. The majority of Southern exports (70%) consist of manufactured goods (data from UNCTAD; see Smith, 2016). Of all the manufactured goods that the USA imports, 60% are produced in developing countries. For Japan it is 70%. We can see this pattern reflected also in the industrial workforce. As of 2010, at least 79% of the world’s industrial workers live in the South (data from the ILO; see Smith, 2016). This shift is due in large part to the rise of global commodity chains, which now constitute 70% of international trade. Between 1995 and 2013, there has been an increase of 157 million jobs related to global commodity chains, and an estimated 116 million of them are concentrated in the South, predominantly in the export manufacturing sector (ILO, 2015). In other words, during the period we analyse in this paper (1990–2015), the South has contributed the majority of the world’s industrial production, including high-technology production such as computers and cars. And yet price inequalities remain entrenched.

if Northern states or firms leverage monopoly power within global commodity chains to depress the prices of imports and increase the prices of final products, their labour “productivity” appears to improve, and that of their counterparts declines, even if the underlying production process remains unchanged. Indeed, empirical evidence indicates that real productivity differences between workers are minimal, and cannot explain wage inequalities (Hunter et al., 1990).

wage inequalities exist not because Southern workers are less productive but because they are more intensively exploited, and often subject to rigid systems of labour control and discipline designed to maximize extraction (Suwandi et al., 2019). Indeed, this is a major reason why Northern firms offshore production to the South in the first place: because labour is cheaper per unit of physical output (Goldman, 2012).

the terminology of “value-added” is a misnomer. In international trade, TiVA does not tell us who adds more value but rather who has more power to command prices. And in the case of global commodity chains, TiVA does not indicate where value is produced but rather where it is captured (Smith, 2016).

our analysis reveals that value in global commodity chains is disproportionately produced by the South, but disproportionately captured by the North (as GDP). Value captured in this manner is misleadingly attributed to Northern economic activities

rich countries are able to maintain price inequalities simply by virtue of being rich. This finding supports longstanding claims by political economists that, all else being equal, price inequalities are an artefact of power. Just as in a national economy wage rates are an artefact of the relative bargaining power of labour vis-à-vis capital, so too in international trade prices are an artefact of the relative bargaining power of national economies and corporate actors vis-à-vis their trading partners and suppliers. Countries that grew rich during the colonial period are now able to leverage their economic dominance to depress the costs of labour and resources extracted from the South. In other words, the North “finances” net appropriation from the South not with money, but rather by maintaining the prices of Southern resources and labour below the global average level.

Patents play a key role here: 97% of all patents are held by corporations in high-income countries (Chang, 2008:141)

In some cases, patents involve forcing people in the South to pay for access to resources they might otherwise have obtained much more affordably, or even for free (Shiva, 2001, Shiva, 2016).

In the World Bank and the IMF, Northern states hold a majority of votes (and the US holds a veto), thus giving them control over key economic policy decisions. In the World Trade Organization (which controls tariffs, subsidies, and patents), bargaining power is determined by market size, enabling high-income nations to set trade rules in their own interests.

ubsidized agricultural exports from the North undermine subsistence economies in the South and contribute to dispossession and unemployment, placing downward pressure on wages. Militarized borders preclude easy migration from South to North, thus preventing wage convergence. Moreover, structural adjustment programs (SAPs) imposed by the World Bank and IMF since the 1980s have cut public sector salaries and employment, rolled back labour rights, curtailed unions, and gutted environmental regulations (Khor, 1995, Petras and Veltmeyer, 2002).

SAPs, bilateral free trade agreements, and the World Trade Organization have forced global South governments to remove tariffs, subsidies and other protections for infant industries. This prevents governments from attempting import substitution, which would improve their export prices and drive Northern prices down. Tax evasion and illicit financial flows out of the South (which total more than $1 trillion per year) drain resources that might otherwise be reinvested domestically, or which governments might otherwise use to build national industries. This problem is compounded by external debt service obligations, which drain government revenue and require obeisance to economic policies dictated by creditors (Hickel, 2017). In addition, structural dependence on foreign investors and access to Northern markets forces Southern governments and firms to compete with one another by cutting wages and resource prices in a race to the bottom.

structural power imbalances in the world economy ensure that labour and resources in the South remain cheap and accessible to international capital, while Northern exports enjoy comparatively higher prices

Cheap labour and raw materials in the global South are not “naturally” cheap, as if their cheapness was written in the stars. They are actively cheapened

the analysis obscures class and geographic inequalities within countries and regions, which are significant when it comes to labour prices as well as resource consumption. The high levels of resource consumption that characterize Northern economies are driven disproportionately by rich individuals and affluent areas, as well as by corporations that control supply chains, and enabled by internal patterns of exploitation and unequal exchange in addition to drain through trade (Harvey, 2005). For example, there are marginalized regions of the United States that serve as an “internal periphery” (Wishart, 2014). It would also be useful to explore the gender dynamics of unequal exchange within countries. These questions cannot be answered with our data, however.

This research confirms that the “advanced economies” of the global North rely on a large net appropriation of resources and labour from the global South, extracted through induced price differentials in international trade. By combining insights from the classical literature on unequal exchange with contemporary insights about global commodity chains and new methods for quantifying the physical scale of embodied resource transfers, we are able to develop a novel approach to estimating the scale and value of resource drain from the global South. Our results show that, when measured in Northern prices, the drain amounted to $10.8 trillion in 2015, and $242 trillion over the period from 1990 to 2015 – a significant windfall for the North, equivalent to a quarter of Northern GDP. Meanwhile, the South’s losses through unequal exchange outstrip their total aid receipts over the period by a factor of 30.

support contemporary demands for reparations for ecological debt, as articulated by environmental justice movements and by the G77

True repair requires permanently ending the unequal distribution of environmental goods and burdens between the global North and global South, restoring damaged ecosystems, and shifting to a regenerative economic system.

It is clear that official development assistance is not a meaningful solution to global poverty and inequality; nor is the claim that global South countries need more economic liberalisation and export-oriented market integration. The core problem is that low- and middle-income countries are integrated into the global economy on fundamentally unequal terms. Rectifying this problem is critical to ensuring that global South countries have the financial, physical and human resources they need to improve social outcomes.

democratize the institutions of global economic governance, such as the World Bank, IMF and WTO, so that global South countries have more control over trade and finance policy.

end the North’s use of unfair subsidies for agricultural exports, and remove structural adjustment conditions on international finance, which would help mitigate downward pressure on wages and resource prices in the South while at the same time enabling Southern countries to build sovereign industrial capacity

a global living wage system, and a global system of environmental regulations, would effectively put a floor on labour and resource prices

Reducing North-South price differentials would in turn reduce the scale of the North’s net resource appropriation from the South (in other words, it would reduce ecologically unequal exchange), thus reducing excess consumption in the North and the ecological impacts that it inflicts on the South.

Structural transformation will only be achieved through political struggle from below, including by the anti-colonial and environmental justice movements that continue to fight against imperialism today

Beijing’s opposition to U.S. coalition building and expansion of military cooperation with Indo-Pacific countries. Overall, Beijing’s instinct is to understand the Ukraine crisis largely through the lens of its confrontation with Washington.

Beijing will want to ensure its position is not overly exposed to Western criticism and to safeguard its moral standing in the eyes of developing countries

Khan returned home with little to show from the trip, the first by a Pakistani prime minister in over two decades. He signed no agreements or memoranda of understanding with his Russian counterpart. Widening Western sanctions on Russia have also sunk Pakistani hopes of energy cooperation with Moscow, casting particular doubt on the fate of a proposed multi-billion-dollar gas pipeline project.

“military-technical cooperation”, which has resulted in more than 60 per cent of India’s arms and defence systems being of Russian origin

India also depends on Russia to counterbalance China, which has become its primary security and foreign policy concern, especially given its unresolved border tensions with Beijing. With Pakistan, India’s main rival, already close to China and cosying up to Russia, India’s worst fear is that China, Pakistan and Russia will come together

Relations with Washington are already strained largely because of Islamabad’s seemingly unconditional support for the Afghan Taliban. To give his government diplomatic space, Khan has sought to forge closer ties with Moscow. Those efforts could not have come at a less opportune time.

When Russia invaded Ukraine, India immediately came under the spotlight as at once a consequential friend of Moscow and a country traditionally keen to portray itself as the world’s largest democracy and a champion of peace. The U.S. and European countries pressured India not to side with Moscow and the Ukrainian ambassador in New Delhi pleaded for India to halt its political support for Russia. Yet under Prime Minister Narendra Modi, India has responded to the invasion with the blunt realism of a rising, aspirational power that does not want to get caught between Russia and what Modi calls the “NATO group”. India chose the well-trodden non-alignment path and hid behind diplomatic language with a not-so-subtle tilt toward Russia.

concerned that the fallout from the war could lead Putin to increase arms sales to anti-Western proxies along its borders, chiefly Syria and Hizbollah in Lebanon, or step up electronic measures to disrupt NATO operations in the Mediterranean Sea, affecting Israel’s own navigation systems. Thus far, Russia has assured Israel that it will continue coordination on Syria, though reiterating that it does not recognise Israeli sovereignty in the Golan Heights, which Israel occupied in 1967 and later annexed

The Gulf Arab countries have so far adopted an ambiguous position on the Russian aggression in Ukraine. As close U.S. partners that also have increasing ties to Russia, they sit between a rock and a hard place, unwilling to openly antagonise either side. They have landed in this conundrum because of what they perceive as a growing U.S. withdrawal from the Middle East. In response, they embarked on an effort to diversify their security relations, moving away from sole reliance on Washington. Russia is one of these new partners.

No Gulf power wants to give the impression of siding with the Kremlin, for fear of aggravating the U.S. – their primary security guarantor. But as international support for Ukraine and anger at those seen to support (or at least not publicly oppose) Russia grows, the damage may already have been done: the U.S. and its European allies were appalled at the Gulf states’ reticence to get in line with immediate condemnations of the Russian invasion

despite Iran’s own experience of losing large swaths of territory to Czarist Russia in the nineteenth century and facing Soviet occupation during and immediately after World War II, the Islamic Republic today can claim few major allies beyond Russia. Tehran sees few upsides in breaking ranks with Moscow. In comparison to the possible results of provoking the Kremlin with anything less than fulsome support, the diplomatic opprobrium it may receive from the U.S. and Europe is of little consequence.

Israel has substantive relations with both Russia and Ukraine: Israeli Prime Minister Naftali Bennett has spoken to both Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy since the war began, and has offered to act as mediator; Israel sees itself as, in effect, sharing a border with Russia to its north east in Syria, relying on Putin’s continued tacit approval of its airstrikes on Iranian targets there; large Jewish and Israeli populations reside in both Russia and Ukraine and over 1.5 million Russian and Ukrainian expatriates live in Israel; and Israel is a major U.S. ally and beneficiary that identifies with the Western “liberal democratic order”.

Israel has offered humanitarian aid to Ukraine but has refused to sell it arms or provide it with military assistance.

African leaders and elites generally oppose sanctions, seeing them as blunt tools that tend to punish the general population more than national leaders. In the meantime, African officials are concerned that the war will have a deleterious impact on the continent’s economies and food security, both by driving up energy prices and by restricting grain supplies from Russia and Ukraine (a particular concern after a period of poor rainfall and weak harvests in parts of the continent). These shocks are liable to be severe in African countries that are still only beginning to recover from the downturn prompted by COVID-19, although oil producers such as Nigeria, Congo and Equatorial Guinea may benefit from a hike in energy prices.

President Zelenskyy is the only elected Jewish head of state outside Israel. He lost family in the Holocaust. As such, Israel’s silence on Putin’s antisemitic rhetoric, such as his claim to be “denazifying” Ukraine with the invasion, is noteworthy. That said, Israel has some track record – vis-à-vis Hungary and Poland, for example – of placing what its leaders view as national security or foreign relations concerns above taking a strong stand against antisemitism.

In contrast to Russia, with which Pakistan’s commerce is miniscule, the U.S. and EU states are its main trading partners. The war in Ukraine could further undermine Pakistan’s economy. The rise in global fuel prices is already fuelling record-high inflation and putting food security at risk, since before the invasion Ukraine provided Pakistan with more than 39 per cent of its wheat imports. With a trade deficit estimated by one analyst at around $40 billion, Islamabad’s reliance on external sources of funding will inevitably grow. A Russia under heavy sanctions will be in no position to assist. In such a scenario, Pakistan’s powerful military, which Khan depends on for his own political survival, could question his foreign posture.

Since 2014, Turkish defence companies have been increasingly engaged in Ukraine, and in 2019 they sold the country drones that Ukrainians see as significant in slowing the Russian advance.

On 27 February, Ankara announced that it would block warships from Russia and other littoral states from entering the Black Sea via the Bosporus and Dardanelles Straits as long as the war continues, in line with the Montreux Convention (though Russian vessels normally based in Black Sea ports are exempt from the restriction, under the convention’s terms). But it also requested other states, implicitly including NATO members, to avoid sending their ships through the straits, in an apparent effort to limit the risks of escalation and maintain a balanced approach to the conflict.

Some fear, for instance, that Russia and its Syrian regime ally will ratchet up pressure on Idlib, the rebel-held enclave in Syria’s north west, forcing large numbers of refugees into Turkey, from where they might try to proceed to Europe. This worry persists though it is unclear that Russia would want to heat up the Syrian front while facing resilient Ukrainian resistance.

A prolonged war will only exacerbate Turkey’s security and economic concerns, and if Russia consolidates control of Ukraine’s coastline, it will also deal a significant blow to Turkey in terms of the naval balance of power in the Black Sea. It is likely that Turkey will draw closer to NATO as a result of this war, and less likely that Turkey will buy a second batch of S-400 surface-to-air missiles from Russia

Kenya, currently a non-permanent member of the UN Security Council, has taken a more strident stance in opposition to Russia’s invasion than most non-NATO members of the Council. This position springs in part from the country’s history. Nairobi was one of the strongest supporters of a founding principle of the Organisation of African Unity (OAU) prescribing respect for territorial integrity and the inviolability of member states’ colonial-era borders.

As in many African countries, a deep current of public opinion is critical of Western behaviour in the post-Cold War era, emphasising the disastrous interventions in Iraq and Libya, as well as the double standards that many Kenyans perceive in Washington’s democracy promotion on the continent.

What Nairobi saw as Washington’s endorsement of the 2013 coup in Egypt particularly rankled Kenyan authorities, who took an especially vocal public position against that putsch

Kenya will also push for the strengthening of multilateralism in Africa to confront what many expect to be difficult days ahead in the international arena. “We are entering an age of global disorder”, Peter Kagwanja, a political scientist and adviser to successive Kenyan presidents, told Crisis Group. “The African Union must band together or we will all hang separately”.

longstanding solidarity between South Africa and Russia. In the Soviet era, Moscow offered South Africans support in the anti-apartheid struggle and actively backed liberation movements across southern Africa.

Although just over half of African states backed the UN General Assembly resolution on Ukraine, many governments in the region have responded to the war with caution. Few have voiced open support for Russia, with the exception of Eritrea. But many have avoided taking strong public positions on the crisis, and some have explicitly declared themselves neutral.

Ghana, which joined the UN Security Council in January, has consistently backed the government in Kyiv. The West African bloc, the Economic Community of West African States (ECOWAS), released a statement condemning Russia’s actions. Nonetheless, not all ECOWAS members voted for the General Assembly resolution. Mali, which has drawn closer to Russia as France pulled its military forces out of the country, abstained. Burkina Faso did not vote, perhaps reflecting the fact that Russia watered down a Security Council statement condemning the January coup in Ouagadougou.

Russia has many friends in Africa due in part to the Soviet Union’s support for liberation movements during the anti-colonial and anti-apartheid struggles. Many also appreciated Moscow’s strident opposition to the more recent disastrous Western interventions in Iraq and Libya. Furthermore, a number of African leaders studied in the Soviet Union or Eastern Bloc countries and Moscow has done a good job of maintaining these ties over the years. Numerous African security figures also received their training in Russia.

The Ukraine conflict is a major problem for Turkey. It threatens not only to damage Ankara’s relations with Moscow, but also to hurt the Turkish economy, pushing up energy costs and stopping Russian and Ukrainian tourists from visiting Turkey. Some analysts estimate that a decline in tourism could mean up to $6 billion in lost revenue.

Since the invasion began, Bolsonaro’s affinities with Moscow have exposed the divisions within his hard-right government. From the outset, Brazil’s foreign ministry has vowed to maintain a position of neutrality, urging a diplomatic solution. But a day after the invasion, Hamilton Mourão, the vice president and a retired army general, said “there must be a real use of force to support Ukraine”, arguing that “if the Western countries let Ukraine fall, then it will be Bulgaria, then the Baltic states and so on”, drawing an analogy to the conquests of Nazi Germany. Hours later, Bolsonaro said only he could speak about the crisis, declaring that Mourão had no authority to comment on the issue.

Calls for neutrality nevertheless enjoy traction in Brazil. Within the government, there is concern that Western sanctions against Moscow will harm the economy, in particular its agricultural sector, which relies heavily on imports of Russian-made fertilisers. Brazil’s soya production, one of the country’s main sources of income, would suffer considerably from a sanctioned Russia.

Mexico depends on the U.S for its natural gas supply, and the prospect of rising prices is spurring the government to consider other means of generating electricity

Relations between Russia and Venezuela flourished under the late president, Hugo Chávez, who set the relationship with Washington on an antagonistic course. Under Maduro, Venezuela’s links to Russia have intensified, especially through the provision of technical military assistance as well as diplomatic backing from Moscow after Maduro faced a major challenge from the U.S.-linked opposition in early 2019.

Ukraine accounts for 90 per cent of Lebanon’s wheat imports and is a leading supplier for countries including Somalia, Syria and Libya. Lebanon is “really struggling with an already high import bill and this is only going to make things worse,”

Russia also provides its Black Sea neighbour Turkey with more than 70 per cent of its wheat imports

Even before the Russian invasion of Ukraine, inflation in Turkey had had hit a 20-year high of 54.4 per cent in February. “The war is only going to exacerbate the cost of food,”

“What’s critical here is that the Black Sea offers a logistical and price advantage . . . Costs will rise significantly when [Turkey] buys from the US or Australia,” he said. “Even if the war ends tomorrow, Ukraine’s planting season has already been disrupted and it will impact the 2022 harvest regardless.”

The UN World Food Programme, which procures grains and food to distribute to poorer countries, bought just under 1.4m tonnes of wheat last year of which 70 per cent came from Ukraine and Russia.

The last time wheat prices spiked to these levels in 2007 and 2008 because of severe production declines in leading producing countries such as Australia and Russia, protests spread through nearly 40 countries from Haiti to the Ivory Coast, while a jump in grain prices in 2009-10 is regarded as one of the triggers of the Arab Spring uprisings in the Middle East.

Egyptian authorities say their wheat inventories will last until mid June and the Egyptian local harvest should start coming in by mid April. Any rise in subsidised bread prices and further increase in food inflation in Egypt “increases the threat of social unrest,”

Wheat inventories are tight everywhere and as Chinese and South Korean buyers of Ukrainian corn, used to feed livestock, sought sellers elsewhere, EU agricultural ministers on Wednesday discussed allowing farmers to boost production using the 10 per cent of land they usually leave fallow in response to the war in Ukraine.

“The supply chain is broken,”

Another source— let's call him a good acquaintance of Putin's — puts it this way: The Russian president has it in his head that the rules of the game were broken and destroyed not by Russia. And if this is a fight without rules, then it’s a fight without rules — the new reality in which we live. “Here he is in a state of being offended and insulted. It's paranoia that has reached the point of absurdity," he says. According to him, Putin sincerely believes that, at least in the first years of his rule, he tried his best to improve relations with the West.